TL;DR
- JPMorgan warns of a possible further decline in the price of Bitcoin despite a recent correction.
- JPMorgan strategists reiterate that BTC appears to be overbought, renewing their prediction of possible declines before the halving in April.
- Investment firm Bernstein raises its year-end price forecast to $90,000, citing several positive factors, including the start of a new bullish cycle and strong inflows into ETFs.
The Bitcoin market has been analyzed by JPMorgan Chase & Co., which warns of a possible further decline in the cryptocurrency’s price despite a recent correction. According to reports, BTC has experienced a retraction of over 10% from its all-time high, with a decrease in demand for BTC exchange-traded funds (ETFs), indicating potential moderation. This pullback has led to the largest outflow of funds in the last four days from the group of 10 ETFs since their introduction on January 11.
JPMorgan strategists reiterate their belief that Bitcoin still appears to be overbought, renewing a prediction made in February of possible declines before the halving scheduled for April. This event will halve the reward for BTC mined per block. Additionally, the continued opening of positions in CME Bitcoin futures, along with the decrease in ETF flows, are seen as bearish signals for BTC’s price, according to JPMorgan strategists led by Nikolaos Panigirtzoglou.
The slowdown in BTC ETF flows challenges the notion of a sustained inflow of funds and could indicate that profit-taking will continue, especially as we approach the halving. Although Bitcoin reached an all-time high of nearly $73,798 on March 14, some analysts warn of decreasing enthusiasm among retail traders. Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, suggests that if the bullish momentum is not sustained after the halving, we could see a significant price retracement below $50,000.
Crossed Forecasts on Bitcoin’s Future
However, despite the recent decline in BTC prices, investment firm Bernstein has increased its year-end price forecast to $90,000, citing several positive factors. This includes the start of a new bullish cycle, strong inflows into ETFs, aggressive expansion of mining capacity, and record-high revenues for miners.
At the moment, we are in the shadow of uncertainty; in the coming weeks, perhaps we will have some insight into the future of Bitcoin. We will remain vigilant for any developments.
